Re: What happens if unable to pay? IRS gets involved?

Posted by Lloyd Christmas (192.138.150.250) on December 22, 2003 at 20:29:34:

In Reply to: What happens if unable to pay? IRS gets involved? posted by Pumpkin on December 22, 2003 at 18:28:15:

These collection idiots are complete criminals. They totally violated the FDCPA. Follow WhyChat's advice on taping them, and then get a good attorney and sue their ass.

The IRS only deals with IRS matters. You will not have a problem with the IRS as along as you:

1) Report all income, both W2 and 1099.
2) Declare only allowed deductions on your tax return.
3) File tax returns on time.
4) Pay taxes on time.

Again, if you have a problem with the IRS, you'll know well in advance. They actually do a good job of notifying people any collection actions to be taken, and if you owe them money (not enough withheld), they are pretty easy to work out a payment plan with. Owning money to the IRS is not illegal as long as you report all information accurately to them. That is the only time you can get in criminal trouble with them.

The only relationship between IRS and unsecured creditor is that if the creditor agrees to accept settlement for less than full amount, you'll have to pay taxes on the amount that is being forgiven. I believe creditors will send you a 1099. However, this doesn't sound like the situation at all since they're still trying to collect the full balance.

If you made tax payment with your credit card to the IRS, and it was a later found that you had fraudently gotten the card, e.g. you lied on the credit application, the credit card issue could file criminal charges from what I know since this would constitute a form of fraud. Even then, the people you paid using the card, such as the IRS, would not have a claim against you since they had already been paid by the creditor. It is up to the creditor to go after it's debtors legally. Again, this doesn't sound like the situation either. It simply sounds like the collection agency is attempting to harrass and intimidate you into paying them by using illegal methods. I wouldn't worry about anything, but I wouldn't let them off the hook either. You can get out of the debt and actually make some $$$ on this by going after them legally.

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